A massive fire has swept through Viva Energy’s Corio oil refinery in Geelong, just southwest of Melbourne, threatening to disrupt petrol supplies across Australia as global fuel markets strain under the weight of conflict in Iran.
Emergency responders raced to the scene shortly before midnight on Wednesday after reports of explosions and towering flames at the facility, which has been a cornerstone of the nation’s energy infrastructure since 1955. The refinery handles around 120,000 barrels of oil daily, providing half of Victoria’s fuel needs and 10% of the country’s total while supporting over 1,100 jobs.
Thankfully, swift evacuations ensured no one was hurt among the 50 to 100 workers present. Ronnie Hayden, state secretary of the Victorian branch of the Australian Workers’ Union, told the Australian Broadcasting Corporation (ABC) that between 50 to 100 workers were at the refinery when the fire broke out but were evacuated safely.
The blaze continues unabated, with authorities issuing air quality alerts as the Environment Protection Authority Victoria monitors rising particulates. Production of jet fuel and diesel persists at lower levels for safety reasons, but petrol manufacturing faces major setbacks.
Energy Minister Chris Bowen described the incident as poorly timed. “This is not a positive development, but obviously there’s a long way to go in terms of working out just what the impact is,” Bowen told Nine’s Today show on Thursday, adding he is working closely with the company.
Fire Rescue Victoria cited equipment failure as the cause, launching a full investigation. Viva Energy CEO Scott Wyatt prioritised securing the site. Production is not our primary priority today, it’s getting the site safe. Two petrol units were damaged, though others remain operational.
“But naturally petrol will be one of the products that are potentially impacted,” he said. “We’ll only start increasing production again once we’re confident we can do that safely.”
Geelong Mayor Stretch Kontelj called it unprecedented. “I’ve spoken to management there this morning and needless to say, this has been a huge shock and has rocked them,” he told the ABC. “The fire is still burning and will have to just burn out. Because of the intensity, it was difficult for the fire units to do much other than to watch.”
Australia’s reliance on imports from Singapore, South Korea, and Malaysia should limit the damage, bolstered by emergency stockpiles. Yet experts warn of tighter margins.
“This diversified supply chain provides a degree of resilience against short-term domestic disruptions,” University of Sydney Professor Yuan Chen said in a statement.
“[It] doesn’t mean people will run out of fuel tomorrow, but it does narrow the buffer we have to absorb shocks,” Swinburne University of Technology’s Hussein Dia said.
Prices may climb 20 to 30 pence per litre soon, with shares in Viva Energy dropping 5% on the ASX.